Tesla online configurator showing Model 3 LR AWD again, albeit with shorter range

Tesla Model 3 Performance
The Long-Range all-wheel drive (AWD) variant of the Tesla Model 3 electric sedan is once again making its presence felt on the EV manufacturer online configurator after a pause of nearly nine months. When the Tesla Model 3 LR AWD was removed from the company’s online configurator in 2022, Tesla Chief Executive Officer (CEO) Elon Musk had blamed the long waitlist for the removal of the variant.
Now, even as the variant in question has finally returned to the in the U.S., buyers will reportedly not get the exact same configuration that they would get last year. The Model 3 LR AWD variant available now offers a shorter drive range. As per available information, its driving range is down by more than 30 miles (48.2 km) compared to the model that was removed from the configurator last year. More precisely, the latest variant is listed with a range of 325+ miles (523.1 km) as compared to the previous variant’s range of 358 miles (576.1 km) on a single charge.
The shorter range suggests that the Model 3 LR AWD variant features a different battery pack. In addition to the lower range rating, the new variant is only eligible for just $3,750 in federal tax credits. The full tax credit is $7,500. The EV most probably features a lithium iron phosphate (LFP) battery pack.
In the LFP chemistry, batteries are cheaper and have less energy-density. Thus, such batteries hold less energy, which in turn offers lower range per charge. In comparison, a NMC (nickel manganese cobalt) battery pack with the same capacity offers longer range.
The use of the LFP battery pack in the Model 3 LR AWD also explains why it qualifies only for half of the US federal government’s tax incentives. Actually, this battery pack is supplied by Chinese manufacturer CATL. It is worth-mentioning here that local production of EVs and their components like batteries is crucial to regain access to the $7,500 federal tax credit following the implementation of the Inflation Reduction Act (IRA) of 2022. The Tesla Model 3 LR AWD is available with a starting MSRP of $47,240, which is significantly down from $53,240 for the Model 3 Performance variant (both excluding shipping charge of $1,390). With deduction of the aforementioned federal tax credits, the former’s effective price reduces to $43,490, while the latter sets the buyer back by $45,740.